FTX Revises Crypto Asset Sale Proposal Amid U.S. Trustee's Concerns

cryptonews.com:

In a recent filing, bankrupt crypto exchange FTX modified its proposed guidelines for liquidating its substantial crypto holdings, addressing concerns raised by the U.S. trustee.

In response to objections raised by the U.S. Trustee on their previous filings, FTX made significant revisions to their proposed creditor claims process.

The initial plan, involving the sale of $3.4 billion worth of crypto assets, is set for review in the Delaware Bankruptcy Court today, September 13th. FTX made last-minute adjustments to its liquidation strategy, sidestepping the need for public notice.

This move reflects FTX's apprehension about potential market repercussions, fearing a widespread sell-off. Their revised proposal removes the requirement for advanced public notice, emphasizing the potential impact on market prices.

Initially, the U.S. Trustee argued that significant asset sales, like Bitcoin or Ether, should be widely publicized to allow for objections.

FTX countered that the mere prospect of a crypto entity selling up to $100 million of assets weekly has already affected market sentiment, and public notice would exacerbate price instability.

As per the plan, the estate will be permitted to sell up to $100 million worth of most tokens per week, potentially adjusting this limit to $200 million for specific tokens. This development aimed to set the stage for one of history's largest cryptocurrency asset liquidations.

Dissatisfied with the Trustee's involvement in what they deemed a routine settlement procedure, the debtors have now included the U.S. Trustee as a noticed party.

However, the proposal still awaits approval from the Delaware Bankruptcy Court.

Additionally, FTX has committed to submitting monthly reports detailing executed